Resort plans fall through, land on market

Creditors have stepped in after planning approvals expired on a $180 million Tasmanian resort.

Spencer Morgan Group bought Musselroe Estate on the state's north-east coast four years ago.

It planned to build a 100-suite resort, 320 homes and an 18-hole golf course.

Banks withdrew funding for the project in late 2008 and the company was forced to apply for an extension on its planning application.

That extension has now lapsed, before the company could secure new investors.

The financial backers stepped in to sell the property, which is thought to be worth around $4 million.

Real estate agent Michael Warren says the property was put on the market last month.

"We've had interest from it from parties who are looking at it perhaps to do something else along the tourism line, or as a residence in a very private situation, or perhaps to look at it again from a farming perspective which is what it was I guess for the last 30 or 40 years," he said.

Dorset Mayor Barry Jarvis says it is disappointing, because there has been some recent interest.

"Council actually went out to the property in May and met some potential Chinese investors," he said.